Florida provides excellent protection for collection against marital property by presuming that the property is held as tenancies by the entireties. Tenancies by the entireties means that property is held by husband and wife jointly with rights of survivorship of 100% of the property without the ability to sever the property. Therefore, a creditor cannot partition any part of the property. This allows a debtor to shield assets held jointly with a spouse. A creditor has the right to challenge the presumption but the burden is on the creditor to demonstrate that the property is not held as tenancies by the entireties to satisfy a debt due by one spouse.
My firm was recently successful in collections by having a stock transfer from a husband to his second wife set aside as fraudulent. The husband was in a bitter divorce with his former wife and had many judgments entered against him in favor of his ex-wife. During the divorce proceedings, he remarried and transferred 50% of his ownership in his company to his second wife. As a result, we filed a motion to implead the second wife as a third-party defendant to have the transfer to her set aside, which the court granted. As long as a creditor has an outstanding judgment and files the requisite affidavit pursuant to the proceedings supplementary statute (Fla. Stat. §56.29(1)), the creditor is entitled to proceedings supplementary against any recipient of a fraudulent transfer from the debtor.
Welcome to my website blog. My goal is to address collection issues including collecting on unpaid invoices, accounts receivables, promissory notes and other debts. I will also highlight important changes in Florida law and notable cases. If anyone reading this blog has any specific questions, please feel free to e-mail me the question and I will try to address same.